Sukanya Samriddhi Yojana is a government scheme that was launched in the year 2014 by Prime Minister Narendra Modi. Sukanya Samriddhi Yojana interest rate is revised on a quarterly basis. SSY aims to provide financial security to a girl till the time she gets married. The Sukanya Samriddhi Yojana Account can be opened for girl children below the age of 10 years. The account matures in 21 years from the time it has been opened.
Based on the Government Security (G-sec) yields, the Indian Government decides the rate of interest for Sukanya Samriddhi scheme on a quarterly basis. The interest rate is compounded on a yearly basis and is credited to the account. Subscribers can also opt for monthly interest. For a month, the rate of interest is calculated on the minimum balance that is present in the account between the end of the 10th and the last day of the month. For the fourth quarter of the FY2020-2021, the rate of interest was 7.6%.
|Year||Interest Rate (%)|
|1 April 2020 – 30 June 2020||7.6|
|1 January 2020 – 31 March 2020||8.4|
|1 April 2019 – 30 June 2019||8.50|
|1 January 2019 – 31 March 2019||8.50|
|1 October 2018 – 31 December 2018||8.50|
|1 July 2018 – 30 September 2018||8.10|
|1 April 2018 – 30 June 2018||8.10|
|1 January 2018 – 31 March 2018||8.10|
|1 October 2017 – 31 December 2017||8.30|
|1 July 2017 – 31 September 2017||8.30|
|1 April 2017 – 30 June 2017||8.40|
|1 January 2017 – 31 March 2017||8.50|
|1 October 2016 – 31 December 2016||8.50|
|1 July 2016 – 30 September 2016||8.60|
|1 April 2016 – 30 June 2016||8.60|
|From 1 April 2015||9.20|
|From 1 April 2014||9.10|
The Government has ensured that the Sukanya Samriddhi Yojana interest rate is lucrative enough for parents to be encouraged to invest more for the future security of the girl child. The interest rate for the financial year 2019-2020 for period between 1 January 2020 to 31 March 2020 was 8.40%. The interest rate pertaining to the current quarter (1 April 2020 – 30 June 2020) is 7.60%, and it is compounded on an annual basis. This is also the best interest rate among other savings schemes, including PPF.
Effectively, the parent gets a competitive interest rate on the Sukanya Samriddhi Yojana Account, in addition to a tax exemption under Section 80C of the Income Tax Act, 1961. There is no other deposit scheme in the country that offers such a high rate of interest, tax exemption, and security for the girl child.
The Sukanya Samriddhi Yojana interest rate change chart is as shown below:
|Financial Year||Assessment Year||Interest Rate (%)|
|Q1 of 2020-2021||Q1 of 2021 –2022||7.60|
|Q1 of 2019-20||Q1 of 2020-21||8.50|
|Q4 of 2018-19||Q4 of 2019-20||8.50|
|Q3 of 2018-19||Q3 of 2019-20||8.50|
|Q2 of 2018-19||Q2 of 2019-20||8.10|
|Q1 of 2018-19||Q1 of 2019-20||8.10|
|Q4 of 2017-18||Q4 of 2018-19||8.10|
|Q3 of 2017-18||Q3 of 2018-19||8.30|
|Q2 of 2017-18||Q2 of 2018-19||8.30|
|Q1 of 2017-18||Q1 of 2018-19||8.40|
|Q4 of 2016-17||Q4 of 2017-18||8.50|
|Q3 of 2016-17||Q3 of 2017-18||8.50|
|Q2 of 2016-17||Q2 of 2017-18||8.60|
|Q1 of 2016-17||Q1 of 2017-18||8.60|
The comparison of Sukanya Samriddhi Yojana interest rate with other popular savings instruments such as PPF, RD and FD is shown below:
|Scheme||Sukanya Samriddhi Yojana||Public Provident Fund (PPF)||Fixed Deposit||Recurring Deposit|
|Interest rate (FY 2020-21)||7.60% p.a.||7.10% p.a.||3.50% to 8.00% p.a.||5.75% - 8.05% p.a.|
SSY Interest Rate Calculation
To explain how SSY interest rate calculation works, here is an example. Mrs. Malvika, the parent of a 3-year old girl child, started investing in SSY from the financial year 2015-16 onwards. The interest rate considered for this SSY calculation is current. Let’s assume that the deposit amount and the date of deposit remain the same for 21 years. She contributes Rs.10,000 on 1 April of each financial year. The maturity amount that her daughter can avail at the end of 21 years is as follows.
|Age of the girl child||Financial Year (FY)||Current Interest Rate (%) as Per the Financial Year||During the Year||Up to the Year|
|Deposit Amount (Rs.)||Interest (Rs.)||Deposit Amount (Rs.)||Interest (Rs.)||Balance Amount (Rs.)|
|3 years old||2015-16||9.20||10,000||920||10,000||920||10,920|
|4 years old||2016-17||8.60/8.50||10,000||1,789||20,000||2,709||22,709|
|5 years old||2017-18||8.40/8.30/8.10||10,000||2,707||30,000||5,415||35,415|
|6 years old||2018-19||8.10/8.50||10,000||3,679||40,000||9,185||49,185|
|7 years old||2019-20||8.50||10,000||5,031||50,000||14,215||64,215|
|8 years old||2020-21||8.50||10,000||6,308||60,000||20,524||80,524|
|9 years old||2021-22||8.50||10,000||7,695||70,000||28,218||98,218|
|10 years old||2022-23||8.50||10,000||9,199||80,000||37,417||1,17,417|
|11 years old||2023-24||8.50||10,000||10,830||90,000||48,247||1,38,247|
|12 years old||2024-25||8.50||10,000||12,601||1,00,000||60,848||1,60,848|
|13 years old||2025-26||8.50||10,000||14,522||1,10,000||75,370||1,85,370|
|14 years old||2026-27||8.50||10,000||16,606||1,20,000||91,977||2,11,977|
|15 years old||2027-28||8.50||10,000||18,868||1,30,000||1,10,845||2,40,845|
|16 years old||2028-29||8.50||10,000||21,322||1,40,000||1,32,167||2,72,167|
|17 years old||2029-30||8.50||0||23,134||1,40,000||1,55,301||2,95,301|
|18 years old||2030-31||8.50||0||25,101||1,40,000||1,80,402||3,20,402|
|19 years old||2301-32||8.50||0||27,234||1,40,000||2,07,636||3,47,636|
|20 years old||2032-33||8.50||0||29,549||1,40,000||2,37,185||3,77,185|
|21 years old||2033-34||8.50||0||32,061||1,40,000||2,69,245||4,09,245|
|22 years old||2034-35||8.50||0||34,786||1,40,000||3,04,031||4,44,031|
|23 years old||2035-36||8.50||0||37,743||1,40,000||3,41,774||4,81,774|
- Is it possible to close the SSY account before maturity?
- Can a loan be availed on an SSY account?
- Can a girl child open more than one SSY account?
- Is the transfer of an SSY account from one bank to another possible?
- Are there any penalties if the subscriber fails to deposit money in SSY account?
- How long does it take for the SSY account to mature?
- Is the SSY scheme available throughout India?
- Should I invest in SIP or Sukanya Samriddhi Account?
No, it is not possible to close the SSY account before maturity.
No, loan facility on an SSY account is not available.
No, a girl child can have only SSY account under her name.
Transfer of an SSY from a bank to a post office and vice versa is possible.
A Rs.50 penalty is levied if the subscriber fails to deposit the minimum amount in a financial year.
An SSY account matures after 21 years from the date the account was started.
Yes, an SSY account can be opened anywhere in India.
Since the investment period for a Systematic Investment Plan (SIP) and the Sukanya Samriddhi Account are long-term, there have been many a debate on which is the best investment channel to avail maximum benefits in the future.
SIP is a method of investing in the stock market through mutual funds on a regular scale, whereas, the investment in SSA is 100% debt-based. When you invest in the stock market for an extended period of time, i.e., more than 14 years, historical data reflects that the returns are huge. These returns not only tackle inflation, but also help your money grow. However, these investments are subject to market risks. In the case of a debt investment tool such as SSA, the interest rate is flexible; so, in the long run, the returns may not be able to meet the inflation and tax. However, the element of risk in a debt-based investment is very low. So, this channel of investment is ideal for individuals who are not willing to endure stock market risks.
Sukanya Samriddhi Top Pages
- SSY Canara Bank
- Sukanya Samriddhi Yojana Documents Required
- Sukanya Samriddhi Yojana NRI
- Sukanya Samriddhi Calculator
- Sukanya Samriddhi Yojana Tax Exemption
- Sukanya Samriddhi Yojana Post Office
- Sukanya Samriddhi Yojana Age Limit
- Sukanya Samriddhi Account Online Check
- Online Transfer to SSY
- Sukanya Samriddhi Yojaa Bank List
Sukanya Samriddhi Other Pages
- Bank of India Sukanya Samriddhi Account
- Corporation Bank Sukanya Samriddhi Account
- Dena Bank Sukanya Samriddhi Account
- IDBI Bank Sukanya Samriddhi Account
- Indian Overseas Bank Sukanya Samriddhi Account
- Sukanya Samriddhi Account Benefits
- Sukanya Samriddhi Account in Axis bank
- Syndicate Bank Sukanya Samriddhi Account
- Beti Padhao Beti Bachao
- Loan against Sukanya Samriddhi Yojana
- Sukanya Samriddhi Vs Children Mutual Fund